Stocks Fall, Dow Drops 114
Aug. 28, 1998
NEW YORK (AP) _ The Dow Jones industrial average slumped again today, failing to recover from Thursday's 357-point plunge amid concerns that global economic turmoil will drag down the U.S. economy and hurt corporate profits.
The Dow industrial average fell 114.31 points, continuing the slide that has dragged the blue-chip barometer 1,286 points below its July 17 record high of 9,337.97, a drop of 13.8 percent.
Broad-market indicators also fell after a brief rise in early trading.
The market's decline was more moderate than the mass selloff Thursday, when the Dow fell 357.36 points. That marked the third-biggest point drop ever, trailing only the 554.26-point plunge of Oct. 27, 1997, and the 508-point collapse on Oct. 19, 1987.
Fueling today's declines on Wall Street was continued weakness in global financial markets. Investors worry about Russia's growing economic and political turmoil and whether the economic crisis that began more than a year ago in Asia will spread to Latin America.
In Asia, Tokyo blue chips dove to a 12-year low, and Hong Kong's key index fell 1.2 percent despite heavy buying by the government.
The Dow's renewed retreat cut short a midafternoon attempt at a recovery on big European markets. Exchanges in London, Paris and Frankfurt all fell, although the damage was not nearly as bad as it had been early in the morning, when key European indexes were off by around 5 percent.
Despite the global selloff, Russia's largest stock exchange closed up 5.6 percent, which represented a gain of less than 4 points at its depressed levels. Trading was light.
Among the hardest hit during U.S. trading were technology stocks, which have considerable exposure to the various fiscal crises overseas.